Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 07 May 2021

Abstract and Keywords

Where did stock markets come from? Stock exchanges and the rules and regulations that make stock markets possible were not invented by government but instead emerged from the market. From the world’s first major stock market in seventeenth-century Amsterdam to the world’s second and third major stock markets in the eighteenth and nineteenth centuries in London and New York, the markets developed over a long period when government officials did not understand them and refused to enforce most contracts in them. Officials viewed most of what went on in stock markets as forms of gambling and passed various prohibitions, yet brokers ignored the prohibitions and developed amazingly sophisticated contracts, including forward contracts, short sales, securitization, hypothecation, and options. Similar to the evolution of money, the stock markets grew out of a series of private choices and can be seen as a quintessential example of spontaneous market order.

Keywords: Amsterdam, London, New York, prohibitions, stock exchanges, private choices, spontaneous order

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.